WASHINGTON The US economy could benefit if the nation was "really blocked" for four to six weeks, a senior Federal Reserve official said Sunday, adding that Congress can afford large sums for relief efforts in the coronavirus.
The economy, which suffered its biggest hit since the Great Depression in the second quarter, could make a solid recovery, but only if the virus were under control, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS. "In front of the nation".
"If we don't do that and we just have this raging virus that is spreading across the country with local outbreaks and blockades over the next year or two, which is entirely possible, we will see many, many more commercial bankruptcies." Kashkari said.
"It will be a much slower recovery for all of us."
He said Congress is positioned to spend heavily on coronavirus relief efforts because the nation's budget gap can be financed without relying on foreign loans, given how much Americans are saving.
"Those of us who are lucky enough to continue to have our jobs are saving a lot more money because we don't go to restaurants, movie theaters, or vacations," said Kashkari.
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